SINGAPORE: Citi downgraded continental Europe ‍on ‍Tuesday to "neutral" for ​the first time in over a ⁠year, saying the latest step-up ⁠in transatlantic ‌tensions and tariff uncertainty dented the near-term investment ⁠case for European equities.

U.S. President Donald Trump over the weekend threatened additional ⁠tariffs on eight ​European countries until the U.S. is allowed to ‍buy Greenland, ushering in ​fresh trade uncertainties.

"We downgrade Europe to Neutral in our global allocation," Citi strategists said, noting their targets still point to an upside for the pan-European STOXX 600 ⁠by the end ‌of 2026, but they see more attractive risk-reward ‌elsewhere. (Reporting ⁠by Ankur Banerjee in Singapore; ⁠Editing by Tom Hogue)